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Matteo Salvini, Italy’s deputy prime minister, looks on during a news conference with Marine Le Pen, leader of the French nationalist National Rally party, not pictured, on Monday, Oct. 8, 2018.
He added that Moody’s is “not driven by short-term movements or reactions either in markets or from politicians,” but that the current rating is “under review for downgrade.”
Italy has been working on its 2019 budget and is due to send it to the European Commission for analysis by next Monday. Expectations are that Moody’s and S&P Global will announce their latest rating decisions for Italy before the end of this month.
Markets have been on edge regarding Italy’s new government and its new policy direction. The overall concern is that the extra spending will make its public debt pile unsustainable, raising the possibility of a debt crisis in the future.
Ellis from Moody’s pointed out that in Italy’s case “we are talking about a very safe credit here and possibly a small movement in the rating.”
Back in Rome, Deputy Prime Minister Matteo Salvini said Wednesday morning that if investors are betting that Italy will backtrack on its budget plans, they would be wrong.
Salvini, leader of the right-wing Lega party, which currently shares power with the Five Star Movement, also said that large financial institutions are ganging up on Italy so they can buy up Italian companies, Reuters reported.